"The supplier pays us, so the service costs you nothing." Most operators who have used a middleman have heard some form of that line. It sounds right. It is not.
Expert Tooling and Automation Ltd, a large manufacturer in the English Midlands, signed five energy contracts through a broker called Utilitywise. No fee on the invoice. No line item. No bill at all. Years later, in a courtroom, the numbers came back. On one of those five contracts, up to 31% of the per-unit electricity rate was the broker's commission. The broker chose the number. The supplier added it to the price. The manufacturer paid it on every unit of power for years and never saw it broken out.
The service was free. The cost was not.
The Mechanism Has a Name
The name is uplift. A broker picks a commission rate. The supplier adds that rate to the unit price. The customer pays it on every unit consumed. It never shows up as a separate line on the bill. The customer sees one number. The broker's cut is inside it.
The UK Supreme Court confirmed the structure in early 2026, ruling on Expert Tooling v. Engie Power Ltd. Across those five contracts, commission inflated the unit charge by 9% to 31%. Total cost hidden inside the price: over £130,000. The court ordered full recovery.
How Wide the Gap Runs
This was not one bad deal at one bad firm. A survey published in mid-2026 by Ofgem, the UK's energy regulator, found that 63% of businesses believed they paid their broker nothing. Nearly two out of three. In one case Ofgem flagged, the broker's commission accounted for 50% of the total contract cost. Half the price was the fee. The customer did not know.
A UK law firm, Harcus Parker, has filed group litigation on behalf of over 4,500 businesses, charities, schools, and faith groups. The estimated exposure across the industry sits as high as £2 billion in undisclosed commissions.
Most people treat this as a bad-broker problem. It is a system problem. The person choosing the commission rate is the same person whose income depends on that rate being high. Boilerplate language stating a commission "may be paid" does not count as disclosure. The Supreme Court confirmed that. The flaw is not intent. The flaw is structure.
What This Looks Like on Your Side of the Atlantic
The court case is British. The mechanism is not. Any time a middleman tells you the service is free and gets paid by the vendor on the other end, the same structure can run underneath. Insurance brokers who earn a percentage of your premium. Merchant processing agents who set the markup on every card swipe. Commercial leasing reps who take a cut from the landlord baked into your rate per square foot. Payment platform referral partners whose fee hides inside the transaction cost.
The words change. The mechanics do not.
A broker who earns more when your rate is higher has no reason to find you the lowest rate. That is not a motivation problem. It is a measurement problem. And the measurement is missing by design.
Three Moves Before You Sign
The fix is not to stop using brokers. Some earn their fee and more. The fix is to see the fee before you commit. Once that is clear, three moves follow from it.
Move 1: Ask for the rate breakdown
Request the base rate and the broker's commission as separate line items before you sign anything. If the broker will not split them out, that tells you the margin is wide enough to hide.
That one request changes the shape of every deal that follows. It forces the broker to put a number on the table, which means you can now weigh it against the value of the work being done for you.
Move 2: Get a direct quote
Call the supplier or vendor yourself. Ask what the rate would be without a broker in the middle. You do not need to buy direct. You need the number so you can measure the spread. The gap between the direct rate and the brokered rate is the commission, whether anyone names it or not.
Move 3: Cap the fee in the contract
Write a fixed per-unit ceiling into the agreement. In the UK energy market, 2026 industry data puts typical broker commissions at 2 to 5 pence per kilowatt-hour on gas. Every industry has a range. Find it. If your broker sits well above it and cannot explain why, the fee is not for service. It is for access you could get on your own.
What the System Shows You
Running these three checks on every brokered contract does something the "free" pitch never did:
It shows you the real cost of the service, in hard numbers, before you commit.
It reveals which brokers earn their fee and which ones bury it.
It gives you a baseline to compare across vendors and across renewals.
It turns a trust-based deal into a measured one.
The Three Questions at Renewal
At the end of each contract cycle, ask three things:
→ What was the broker's total commission across all units consumed?
→ What did the broker provide that you could not have done in two hours with a phone and a spreadsheet?
→ Did the rate hold flat, or did it drift higher on renewal without a clear reason?
That is the difference between advice that sounds right and a system that proves itself.
See what's really happening in every deal
Aligned shows you what buyers are doing between meetings inside your most important deals then surfaces the risks, openings, and next steps. No more guessing where a deal stands or finding out a champion went quiet too late. Just real visibility, so you can act before it's too late.
Where You Stand
Expert Tooling paid over £130,000 in fees that never appeared on a bill. The service was free. The cost was not. Now you know the name for what kept the number out of sight.

